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To: Terpfen
There's a little bit of spin here. The Fair Tax, in order to achieve revenue-neutral income to the Treasury, would have to be set at 23%. The 30% number arises when you add in state taxes to the final retail bill, but state tax rates are irrelevant to federal gubmint tax rates. (Unfortunately.)

This remark is spin. Everything we purchase today contains nearly 23% embedded taxes due to corporations passing on the cost of their income taxes to the consumer. A $1.00 item today actually costs 77 cents with 23 cents of embedded taxes. That is a tax inclusive rate. The Fair Tax will eliminate corporate income taxes and apply the 23% to the actual amount as a separate entry on the receipt(23/77=30%). This is the tax exclusive rate. The amount of tax collected will be the regardless of which rate you cite and the total cost of the product will be close to the same as we have now. It will not increase 30%.

Solution: set the national sales tax at a rate lower than 23% and cut federal spending. Which is the entire goal of the Fair Tax, to achieve lower federal spending while making Americans completely aware of how much they REALLY pay in tax.

Twenty three percent in necessary to collect the same amount as is collected today. Cutting federal spending is only one part of The Fair Tax. Americans will be aware of how much they pay as the tax rate will be itemized on the bill.

That all said, the Fair Tax is never getting enacted anyway, so who cares?

Why do you bother to respond if it is a moot point? The fact is support is growing for The Fair Tax. That is evident by the increasing number of cosponsors that have signed on in each session of Congress since the bill was first introduced in 1999. That number is a direct reflection of the growing grassroots movement that has put increasing pressure on Congress critters.
46 posted on 04/20/2009 4:41:31 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D

That’s quite the defensive post you’ve authored there.


50 posted on 04/20/2009 4:46:51 PM PDT by Terpfen (Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
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